ARTICLE · 27 JULY 2016

CASE STUDY: Rotfleisch & Samulovitch Obtains $800,000 Refund On Successful Tax Appeal

Rotfleisch & Samulovitch P.C.

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A trust examiner conducted an HST audit of The Canadian Auto Exchange for 2013 reporting periods.

CanadaTax

David Rotfleisch

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Brief Situation Overview

A trust examiner conducted an HST audit of The Canadian Auto Exchange for 2013 reporting periods. As a result of the examination, all input tax credits (ITCs) claimed by The Canadian Auto Exchange during that period were disallowed. The CRA reassessed and denied all the credits claimed during the examination period in addition to all subsequent HST periods. The analysis of the tax examiner was flawed and resulted in over $800,000 in denied ITCs.

Toronto tax lawyers Rotfleisch & Samulovitch were hired by the client to assist with the GST/HST appeal case.

Problems & Challenges

The Canadian Auto Exchange exports vehicles to other countries so collecting supporting documents was challenging. The Appeals Division at the CRA was, at times, less than reasonable with their requests for documents and it was necessary for Toronto tax lawyers Rotfleisch&Samulovitch to request extensions in order to meet CRA's expectations. At one point, the CRA

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